Tesla has slashed prices in key markets following a decline in sales. The electric vehicle giant announced reductions in both Germany, its largest market in Europe, and China.
In China, Tesla is cutting the prices of its four models by nearly $2,000, with the starting price of the popular Model Y hitting its lowest point ever. Similarly, in Germany, the price of the Model 3 has been reduced by around $2,000. Earlier in April, Tesla also lowered the prices of three models in the U.S. by the same amount.
Despite falling short of its delivery targets for the first time in four years, Tesla managed to regain its position as the world’s leading EV manufacturer, surpassing China’s BYD. While Tesla produced 433,000 vehicles globally in Q1 of 2024, it only delivered approximately 387,000, marking an 8.5 percent decline compared to Q1 2023. The company faces intensified competition from traditional automakers and has announced a 10 percent reduction in its global workforce. Consequently, Tesla’s shares have plummeted by over 40 percent in 2024.
Elon Musk postponed a scheduled trip to India, where he was set to meet Prime Minister Narendra Modi, citing commitments at Tesla. The visit was expected to include the unveiling of plans for Tesla’s entry into the South Asian market, according to Reuters.
Industry experts have eagerly awaited Tesla’s launch of a compact electric vehicle priced around $25,000, dubbed the Model 2. Reports earlier this month suggesting Musk might abandon the project added to uncertainties about the company’s future, although Musk dismissed them as false.
